All Forum Posts by: Brad Birky

@John Burke

Apparently they tried talking to the zoning dept but it was going to be a longer process than they were willing to undertake.

@Michael P.

Sure, as long as you don’t mind if I go ahead and increase the list price by 25% first! 🤣

I only know it was going to be a DSCR loan with them putting about 20% down

Our realtor suggested several lenders for them, but they claim they continually get the same answer. 

The financing contingency period is up tomorrow and it looks like they are going to back out, so I guess we will put the property back on the market as a cash-only purchase and see what happens. 

We are in the process of trying to sell our duplex in Toledo and have run into (yet another) issue. The buyers have reported that they are unable to obtain financing since the duplex (built in 1907) is located in an area that is zoned for single family homes (Toledo zoning was established much later). The issue the banks reportedly have is that IF the property needs to be rebuilt at some point that it would have to be rebuilt as a single-family unit instead of multi-family. 

The real kick in the pants is that EVEN IF the doomsday scenario occurred, since the price point is so low the property would still cash flow as a SFR - but the underwriters don't want to hear that. We know we could apply for a zoning change, but that process could/would take months and we are beyond ready to move onto our next investment.

Has anyone else come across problems like this, where the lender is going down a rabbit hole and denying funds because of something that could possibly happen in the future?

 I'm definitely not trying to pass off the entire house purchase and renovation. If we paid someone else for lodging during this contract it would simply be a business travel lodging expense. I'm just trying to figure out how to qualify (and quantify) the appropriate amount of our own building that we utilized while we were working this out of state contract for a 6 month period. 

Our primary residence is in Florida. The duplex is in Toledo OH, and from what I understand it would not be eligible to claim for the home office expense.

Hello - I have a somewhat unique situation that I am unsure how to best claim on our jointly filed tax return. My wife and I are based in Florida and work as non-profit business consultants. Last year we had a client in Ohio which needed us to be on site for half the year. We knew well in advance that this was coming, so in 2022 we purchased a duplex which needed a lot of work, did some intense rehab to it and furnished both units. We are all in for about $60k (not counting utilities). 

When the contract began in 2023 we were able to stay in 1/2 of that property and listed the other unit on Furnished Finder (unfortunately, no one actually rented the other unit). We have completed our contract, sold the furnishings, and now both units are listed as long term rentals. 

Renting from someone else during the term of the contract would have cost us at least $10,000. It seems to me that some portion of the house purchase/reno/outfitting should be able to be claimed as a business expense, but I have no idea how to correctly do so. 

Any ideas?

@Nathan Gesner

Isn’t mogal just the term for a non magical human? 🤓

@Kyle Banks

A $9000 annual tax bill for a 4 plex in seems really steep. Are you sure that number is accurate?